Reference Entry

capital expenditure

Nigar Hashimzade, Gareth Myles and John Black

in A Dictionary of Economics

Fifth edition

Published in print January 2017 | ISBN: 9780198759430
Published online January 2017 | e-ISBN: 9780191819940
capital expenditure

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Expenditure by a company which cannot be treated as a *cost in calculating its profits. It thus has to be paid for either out of post-tax income, or by raising external finance. Capital expenditure may be on creating new capital goods, or, more often, on buying them from outside suppliers. It also includes the purchase of existing businesses, and of patents and trademarks....

Reference Entry.  66 words. 

Subjects: Economics

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